The prize money awarded by the Nobel Prize foundation has been slashed by 20 percent for this year’s winners. The prize, which in previous years stood USD 1.42 million ( 10 million Swedish krona ) has been cut this year to USD 1.1 million ( 8 million Swedish krona ).

The reason given for the cut in monetary winnings is the unpredictable economic climate. However, Lars Heikensten, head of the Nobel Committee said “Long term, we aim to raise the figure, even though we think that the Nobel Prize’s value should lie in the prize itself and not the prize money.”

The cut is essentially a safety measure in order to preserve the capital, which was donated in the will of Alfred Nobel, philanthropist and inventor of dynamite, and is managed by the foundation, which was set up in 1900.

The foundation has also made administration cuts, and cuts in expenses related to the Nobel Prize celebrations, which are held in Stockholm and Oslo every December.

The cut will effective for this year’s Nobel Prize laureates and is the first time the prize money has been lowered since 1949.

Nicola Peyton, nicola@romania-insider.com